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 user 2003-12-15 at 9:42:00 am Views: 67
  • #4238
    Danka Will Cut Jobs and Facilites in US and UK

    Danka Business Systems PLC plans to cut about 675 jobs, while consolidating and eliminating surplus real-estate facilities, mostly in the U.S. and U.K., as it attempts to reduce its cost structure.

    In a press release Friday, the office-products provider said it expects the moves to result in annual savings of about $40 million to $45 million, and plans to record a charge of about $25 million to $35 million over the next two fiscal quarters for the restructuring.

    Danka said it has maintained a high cost structure over the past few years, due in part to acquisitions and an “extensive analog machine population.” The company said its equipment population is now about 50% digital.

    The company expects the restructuring to help it achieve its goal of selling, general and administrative costs of 30% of revenue.

    Danka Business Systems has about 10,870 total employees, and facilites in the U.S., the U.K., Italy, Spain, Germany, Canada, Mexico, Puerto Rico and Brazil.

    Shares of the company were recently trading up 20 cents, or 6.3%, at $3.42 on Nasdaq volume of 154,659 shares. Average daily volume is 355,574 shares. The stock traded at a 52-week high of $5.27 Jan. 16, and traded at a 52-week low of $2.01 Aug. 11